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In your shoes, I think I'd be demanding a new replacement, rather than repair, and some kind of goodwill gesture, like some free ebooks maybe?
Retailers depend on their reputation and goodwill; it's not in their interest to treat customers badly. Maybe they need reminding of this. Have you thought about contacting Watchdog, or some other consumer rights show/press? Perhaps tell Waterstones that you intend to do this. They hate bad press!
Good luck.
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